SL Green Realty has stepped in to help developer Joseph Moinian stabilize his investment in 180 Maiden Lane, a 1.1 million-square-foot office building in Lower Manhattan, the Wall Street Journal reported, but Moinian will pay heavily for the aid.
SL Green, a mezzanine lender on the downtown property, has agreed to help Moinian restructure $292 million worth of debt in return for an ownership stake of 49 percent in the office tower, sources told the Journal.
Moinian’s debt on the building reached special servicing early last year, but he managed to extend deadlines to 2012, thanks to help from advisory firm Iron Hound Management. Another deadline is on the horizon however, as an 800,000-square-foot lease by American International Group is set to expire in 2014.
Moinian and SL Green have enjoyed a good relationship for over a decade, and last year struck a similar deal at 3 Columbus Circle.
“The first person that I spoke to about the partnership was SL Green, and the last person I spoke to was also SL Green and nobody in between,” Moinain told the Journal about the Columbus Circle deal. [WSJ]